Appraisal Transfer Policy From One Lender To Another Lender

Gustan Cho Associates are mortgage brokers licensed in 48 states

In this blog, we will cover and discuss appraisal transfer policy from one lender to another when a borrower is changing mortgage lenders. As you know we do not have any LENDER OVERLAYS at Gustan Cho Associates. Meaning we can help more borrowers than most lenders. Over 75% of our borrowers at Gustan Cho Associates are folks who get a last-minute mortgage denial or are stressing during the mortgage process with the current lender. Many times our clients come to us after a last-second denial. Other times they are so far in the process that they already have an appraisal completed. One of the most common questions we get is, DO YOU NEED TO PAY FOR A SECOND APPRAISAL? In this blog, we will discuss the answer to that question and our Appraisal Transfer Policy.

Mortgage Lenders Appraisal Transfer Policy Mortgage Process Guidelines

Appraisal transfer policy does vary from loan type to loan type. FHA Appraisal Transfer Policy- The good news for FHA Loans is the appraisal can be transferred from lender to lender. For FHA mortgages, the FHA appraisal is tied to the FHA case number. If you change lenders during the process even after a last-second denial, you can use the same appraisal you’ve already paid for. Not only does it save you money, but it also speeds up the process. Many times we are able to help clients close on their new homes in just two weeks!  Since the appraisal can be transferred to us usually within 48 hours. This speeds the process up tremendously. If you have been given a last-second denial on your FHA mortgage, please reach out to us for a second opinion. If you have any doubt please see our reviews. There are many success stories when we save the day from a last-second denial.

Fannie Mae Appraisal Transfer Policy On Conventional Loans

Conventional Loans Appraisal Transfer Policy- This is where transferring an appraisal can get difficult. The majority of lenders will not accept a transfer to appraisal for conventional financing. More times than not, you are required to pay for a second appraisal when changing lenders on a Conventional loan. The good news is money appraisers are set up with many AMCs (appraisal management companies). We can go do an UPDATE to the original appraisal, changing it to the new lender’s name. In this scenario, you are not required to pay for a new home appraisal.

NON-QM Appraisal Transfer Policy

NON-QM Appraisal Policy-  Non-QM lending has its own rules and certain times exceptions on a case-by-case basis. The majority of the time you can transfer an appraisal from another lender. The current lender must sign over the rights of the appraisal to the new lender. Most of the time this is due to a denial from the current lender. So the majority of the time there are no issues having them transfer the right to the appraisal. As you know, the cost of an appraisal is significant. So anytime we can transfer the appraisal we want to do so. If you have specific questions on your appraisal issues please contact Mike Gracz at [email protected] or call directly on 630-659-7644. Or text us for a faster response.  There are very few situations we have not seen before and are always available to help! As stated above and in our customer reviews, we save the day more often than not. If you’re running into any mortgage issues please reach out to us for a second opinion.

Do All Lenders Have the Same Appraisal Transfer Policy From One Mortgage Lender To Another Lender

There are many instances where borrowers need to change lenders during the mortgage process with their current lender. A home appraisal should never be ordered unless the loan officer is fully confident that the home loan will close. Most loan officers who are not experienced will often issue a pre-approval without properly qualifying their borrowers. The number one reason for a last-minute mortgage denial and/or stress during the mortgage process is because the loan officer did not properly qualify the borrowers. Transferring from one lender to another during the mortgage process can be done. However, the mortgage process needs to start all over.

Home Appraisal Fee Is Paid Upfront Prior To Closing By Borrowers

Home Appraisal Fee Is Paid Upfront Prior To Closing By Borrowers

The home appraisal is one of the costs that need to be absorbed by the homebuyer prior to closing. Most appraisals will cost between $450 to $500. A home appraisal transfer is allowed on VA and FHA loans. In this blog, we will discuss home appraisal transfers when borrowers change lenders during the mortgage process.

Appraisal Transfer Policy Process And Guidelines Among Lenders on Loan Programs

Every loan program requires a home appraisal. However, the only Home Appraisal Transfer allowed is on FHA and VA loans. FHA Home Appraisals are the premium appraisals. If a home buyer has a certified FHA Appraisal, they can do an FHA Home Appraisal Transfer with any other lender on FHA loans. FHA Appraisals can also be used on conventional, VA, and NON-QM loans in the event that the borrowers decide to change loan programs with a different lender.

Lenders Honor FHA Appraisal Transfer Policy from One Lender to Another Lender

Most loan programs will honor an FHA Home Appraisal Transfer. However, with conventional loans, lenders will not honor a conventional appraisal transfer. What this means is if you got a conventional appraisal completed with one lender and want to change lenders, the original conventional appraisal will most likely not be honored with the new lender. VA appraisals can be transferred from one lender to another lender. NON-QM lenders and portfolio lenders will honor FHA Home Appraisal Transfer but not other home appraisal transfers.

Is Appraisal Transfer Policy on Changing Lenders Difficult?

Changing lenders during the mortgage process is very common. There are countless reasons why borrowers change lenders during the mortgage process. It can be due to personal reasons where loan officers are not returning borrowers’ calls promptly. It can be due to a last-minute mortgage denial or stress during the mortgage process. Or it can be because the mortgage underwriter keeps on coming up with new conditions after conditions. If borrowers have an FHA Appraisal already paid for and completed, that appraisal will transfer when they transfer the FHA Case Number from their original lender to their new lender.

How To Initiate The Appraisal Transfer Policy Process To A New Lender

How To Initiate The Appraisal Transfer Policy Process To A New Lender

Mortgage Borrowers who intend to change lenders during the mortgage process can do so by requesting to their current lender they intend in switching lenders. They should email their loan officer and/or mortgage processor to transfer the case of their FHA loans to the new mortgage lender. The FHA case number can easily be transferred from one lender to another lender in a matter of a day or two. The FHA Home Appraisal will transfer with the FHA Case Number Transfer. However, if you have a copy of the appraisal, submit it to the new lender. Under HUD Guidelines, the mortgagee needs to act on an FHA Case Number Transfer Request within five business days of the request. The FHA Home Appraisal Transfer does not need to be transferred by the original lender unless the appraisal has been paid for by the borrower.

Validity Of FHA Appraisal Transfer Policy

FHA Home Appraisals is good for four months from the date of the Appraisal Report. There is an expiration date on FHA Case Numbers. If the expiration date has passed, then a re-inspection is required on the home appraisal which is a fraction of the cost of the original appraisal. Updated re-certified FHA Home Appraisals are valid as long as the following conditions apply:

  • The same home appraiser re-certifies the original FHA Appraisal
  • There are no downward value changes since the original value
  • The subject property meet all HUD Property Guidelines and is habitable 
  • The update must be done before the 120-day expiration

Starting The FHA Case Number Transfer Process To A New Lender

The new lender cannot start the new mortgage process on FHA Loans until the FHA Case Number has been transferred. Michael Gracz, the National Sales Manager at Gustan Cho Associates is an FHA Case Number Transfer Expert. Mike Gracz says the following:

In order for another lender to work on a loan that a previous lender has been working on, the FHA case number must be transferred.. A Loan Originator can ask the new lender to do a case query on FHA Connection in order to figure out what the current FHA case number is. In some cases, the current lender with the case number will ask for a borrower’s authorization and letter of explanation that is signed and dated.

Here is a sample letter borrowers can use when notifying their original lender to stop working on their FHA Loans and transfer the FHA Case Number to their new lender:

Date: XX/XX/2019

To Whom It May Concern:

Please transfer my FHA Case Number To My New Lender (NEW MORTGAGE COMPANY) effective immediately. Here is my Loan Number (ENTER LOAN NUMBER), Social Security, Subject Property Address, Contact Information. Please contact me with confirmation (ENTER ALL CONTACT INFORMATION).

Borrowers and Co-Borrowers Name, Signature, Date

VA Appraisal Transfer Policy on VA Loans

VA Appraisal Transfer Policy on VA Loans

VA Appraisal Transfer Policy -If you are in a process of obtaining a VA loan and need to transfer your appraisal to another lender, the good news is you can. Very similar to FHA, VA appraisals are transferred from one to the lender all the time. This transfer is completed by a SAR (staff appraisal reviewer) from the VA. This is done directly on the VA portal and only takes a few days to complete. Once again this will help speed up your mortgage application when you decide to change lenders. Gustan Cho Associates are experts in VA mortgage guidelines that are always available to help. If you feel like you will be turned down or have been turned down for a VA loan, please call or text me at Gustan Cho Associates on 630-659-7644.